Donna M. Mitchell

Annualized excess spread and a cash spread account should mitigate concerns around the timing of cash flow to the trust and the collateral's assumed discount rate, says DBRS.

Since the previous deal from the master trust, the number of Hotwire Communications sites has increased from 515 to 675, and key performance metrics have improved.

The transaction benefits from several forms of credit enhancement, including overcollateralization, excess spread and Vervent acting as backup servicer.

Loans that have yet to be originated must adhere to limitations. No more than $719,870 of originations can consist of loans made to students attending proprietary schools.

A vast majority of the collateral, a combined 82.73%, have terms of between 49-60 months (58.46%) and 61-72 months (24.27%), while a slight majority of the pool (51.66%) have no credit scores.

Losses are increasing in both the managed portfolio and the securitization, the deal, known as EART 2023-2, has a number of forms of credit enhancements built into the structure.

Monthly payment rates in the pool reached record highs over the last couple of years, reaching 71.5% at the end of Q1 2023, one of several credit positives to the deal.

The program, which is facing some declines in performance, had not issued any credit card ABS since 2019-C, when it had issued about twice the current amount.

GoodLeap 2023-2 has loans with fewer 25-year terms and higher FICO scores generally. Together, they'll have lower expected loss rates than those with longer terms and lower FICO scores.

GMALT 2023-2 offers note holders several advantages from a credit perspective, according to Fitch, including strong residual value realizations on the cars being financed.

Actual shipping vessel usage dropped to less than 70% during the COVID-19 pandemic, but its utilization rate only slipped to 98.4% during the pandemic.

Underlying loans fell into higher credit tiers this time around, a result of ongoing tightening in the sponsor company's origination strategies.

The pool will have an average senior overcollateralization cushion of 10.33%. Overall, however, the portfolio has a lower WA spread and lower available excess spread, which it says indicates a weaker underlying portfolio.

At around June 15, 2024, the VSAC will reach the end of a collateral recycling period, when it has the option to originate additional eligible loans.

The senior, triple-A rated notes, which is in the A-1B class, are expected to have a 210 basis point spread, with a 38% credit enhancement level.

The deal has a higher percentage of open bankruptcy assets, and the level of called collateral is 10.6%, which should actually slip to 8.0% of the final pool.

Sunrun will issue the notes off of a portfolio of 25,789 leases and PPAs associated with solar instillations, some of which include storage equipment, extended to prime borrowers.

The current transaction—the platform's seventh Rule 144A deal—includes a 'AAA' note class, does not have a pre-funding period, and has a higher net recovery rate over the previous deal.

Landmark Funding Trust does not include a class E tranche, and overcollateralization has increased to 21.00% of the initial adjusted loan principal balance, from 10.35%.

A vast majority of the assets, 82.34%, were originated at 36-month terms, and Fitch notes that consumer preferences for longer term periods weigh in as a credit positive.